FSBO - For Service Beyond Outstanding

For Sale by Realtor Brings 16% More than FSBO's

NAR research shows homes sold with the help of a real estate professional sell for 16 percent more than those sold without representation. This statistic comes from the 2005 NAR Profile of Home Buyers and Sellers. The report is for sale by NAR to anyone who wants it. This finding was consistent across all price levels – the value of homes sold by owners was similar to the value of homes sold with the help of an agent. But what’s behind the data? A number of factors are at play: 1. Many homes sold directly by their owners are never placed on the open market, so they don’t attract a market price offer. According to the most recent research, 39 percent of homes sold without professional assistance were sold to buyers the sellers knew in advance (relatives, friends, neighbors, etc.). These closely held home sales are not going to command top dollar, because there is little to no competition for them and price negotiations may be affected by personal relationships. 2. Even if do-it-yourself homeowners place their home on the open market, they often have problems marketing the home effectively. Although 77 percent of recent home buyers used the Internet last year to search for a home, only 17 percent of for-sale-by-owner sellers placed their home online. These home sellers typically use methods like yard sales, newspaper ads, and word-of-mouth, which have limited reach. Preparing the home for sale can also be difficult – many homeowners see their homes through rose-colored glasses and have problems identifying and fixing issues that make their homes less appealing and marketable to buyers. 3. Real estate professionals know how to price a home appropriately for the market. This is one of the most difficult tasks faced by home sellers who don’t hire a professional. Homes that are priced too high for the market don’t sell, and after a certain amount of time, are ignored by buyers in favor of new listings, even when the price is dropped. Homes that are priced too low represent a loss for the seller.

Need assistance in making an informed decision on whether the For Sale by Owner (FSBO) route is for you? Find out why Caveat Emptor - buyer beware - applies with some FSBO homes.

BUYERS:  There are some very good FSBO deals out there. However, there are homes for sale by owner that are also greatly over-priced, some by $10,000-$30,000 and more. To be fair, there are also lots of real estate listings that are over-priced!

Are you able to distinguish between For Sale by Owner homes that are listed at fair market value, modestly over-priced, or really over-priced? A buyer's agent can help negotiate a fair price, protect your interests, and remove emotion from the equation with a professional market analysis of the home you wish to purchase. The best part is that a buyer's agent does not usually cost the buyer any money, and your interests are protected when you work with an experienced Realtor (see Buying-Selling Homes).

• Do the For Sale by Owner sites that you visit post their success rates - the number of sales-to-active listings ratio, and their listed price-to-sales price ratio? If not, will they give you the statistics when you ask? If their numbers are not forthcoming, why would they hide information from you which is readily available to them?
  
  
• Do the For Sale by Owner sites that you visit use deceptive marketing tactics to secure your home listing? A 2003 study of the homes that were marked "Sold" in a popular Canadian FSBO publication, revealed that many of the homes were not sold by owner! They were sold on Canada's Multiple Listing Service (MLS) by a Realtor and the same applies to FSBO Homes in the United States!
  
  
• For Sale by Owner sites promise to save you thousands of dollars in Real Estate commissions but do they really? By nature, For Sale by Owner - FSBO - shoppers are looking for bargains. Are you ready to be a target for low-ball offers? Do you know how to handle them when they come in?
  
  
• With so many For Sale by Owner websites on the Net and more cropping up daily, consider the monumental task that buyers face trying to find you!

• Why do most FSBOs eventually list their homes with a Realtor on the Multiple Listing Service (MLS)? One reason why is that the MLS marketing system is unparalleled for putting buyers and sellers together.
  
  
• Most buyers use Realtors, so marketing to Realtors is essential. Do you have a marketing plan in place for both Realtors and Buyers?
  
  

If you are thinking of selling your house For Sale by Owner, if you are thinking of purchasing a For Sale by Owner home, or if you are looking for more information before you make your decision, who better to contact than an experienced FSBO? Moreover, as an experienced FSBO, I respect and support the seller's decision to sell privately when they have made an informed choice.

For exceptional service, honest answers, and no pressure to list, contact me today, or download some of our resources in the Home Buying and Home Selling sections.

Maxine Carter, REALTOR®, RE/MAX Results
    For Service Beyond Outstanding – FSBO  
       Sold on Service and Sold on the Tri-Cities